What can be some ways to revive Indian Economy?
There are long-term actions India could undertake to revive its economy
Firstly, India needs to boost value-added exports like Information Technology.
Information Technology demand for the telecom, healthcare, and retail sectors are growing rapidly.
Information technology in India is an industry consisting of two major components: IT services and business process outsourcing with export revenues standing at $108 billion and domestic revenue at $35 billion in 2016.
According to India Brand Equity Foundation, India IT is expected to reach $350 billion by 2025.
Therefore India must promote innovation via research and development (R&D); upgrade the skills of the Indian IT workforce; improve access to long-term finance for India start-ups.
India needs better infrastructure.
Projects like the India–Myanmar–Thailand Trilateral Highway (the East-West Economic Corridor) to link India with Myanmar, Thailand, Laos, Cambodia, and Vietnam needs to be completed by India.
Electricity is another major issue India residents and businesses face daily.
For electricity consumption, India consumes 1,408,624,400,000 that number is 1,122 kWh per person of electricity per year. The United States 3,911,000,000,000 kwh that is 12,700 kwh per person. India’s energy problems made global headlines when 600 million people were in the dark due to blackouts in 2012.
Low cost manufacturers in Vietnam now offers lower production costs than India due to their cheaper and more reliable power supply to manufacturers.
Vietnam’s share in global ready-made garment exports increased from 1.7% to 5.3% in the past decade. India saw a plain 0.8%. India decreased in comparative advantage due to infrastructure bottlenecks and inferior logistics.
The Jawaharlal Nehru Port, largest container port in India, needs to be upgraded to increase the ports annual container volume from 4.47 to 10 million TEU.
The handling of 10 million TEU annually at the port will put it on par with the Port of Hamburg in Germany, Port of Antwerp in Belgium, and Port of Los Angeles in the United States.
Develop Progressive Trade Policies.
India has a good manufacturing base, great exporter of IT services and strategically located in South East Asia with access to huge markets like China, Japan, Vietnam, etc.
But it needs to improve its trade policies to live up to its economic potential.
Thus, it is necessary for India to pitch for greater market access in the proposed Regional Comprehensive Economic Partnership (RCEP) it is negotiating with fifteen countries.
US-India free trade agreement
The case for Free trade Agreement between the two largest democracies in the world (India & United States) is solid.
Unfortunately, the U.S.-India trade partnership is vastly under-performing.
Bilateral trade in goods was about $74.3 billion in 2017.
This sounds good but pales in comparison with two-way trade between the United States and China, which was $636 billion is almost nine times as large
Main U.S. imports from India include information technology services, Pharmaceuticals, machinery, textiles, chemicals, iron and steel products, coffee, tea, and other edible food products.
Main India imports from the U.S. include aircraft, fertilizers, machinery, organic chemicals, and medical equipment.
The United States is also India's largest investment partner, with a direct investment of $10 billion (9% of total foreign investment).